€10bn bank investment written off

THE state has written off about half of its investments pumped into the two country’s main banks, leading to potential losses of nearly €10 billion.

The National Pension Reserve Fund revealed yesterday that €4.8bn has been put into Bank of Ireland while another €16.1bn was put into AIB.

The funds were invested as part of the recapitalisation of the two banks. But the fall in values of shares at the banks has seen investment returns plummet, the Oireachtas Public Accounts Committee (PAC) heard.